“The media says it was due to increasing inventory. They don’t say anything about demand going down”
Growing inventory can be as much a result of reduced demand as over-supply. Which is it? Only the market knows.
By the laws of supply and demand, when prices are high, demand falls off, except for short-term speculative demand, which falls off a little later – after the bubble builds.
Reduced “normal” demand due to high prices, coupled with the end of speculative demand can cause big price changes.
